• Monday, April 22, 2024
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BusinessDay

CBN refocuses on core mandate, stops direct involvement in interventions

The Central Bank of Nigeria (CBN) has reinstated that it is realigning its focus towards its core mandate of ensuring monetary and price stability and, hence, has stopped its direct involvement in development finance interventions.

Olayemi Cardoso, the governor of CBN had earlier on several occasions, stressed the fact that the apex bank is poised to support relevant organisations that possess the expertise and capacity to intervene directly.

Given the above, the CBN decided to donate fertilizers to Nigerian farmers through the Federal Ministry of Agriculture and Food Security, which possesses the institutional knowledge and infrastructure to effectively distribute the composts to the last mile.

Read also: Interest rate to fall to 12.5% in 2026 as CBN unwinds tightening

This partnership, according to the CBN, is aimed at supporting the Federal Ministry of Agriculture and Food Security’s efforts to enhance food productivity and security, ultimately curbing food inflation and reinforcing the apex bank’s pursuit of price stability.

To actualise this goal, the apex monetary authority of Nigeria has donated 2.15 million bags of various blends of fertilizers, valued at over N100 billion at current market prices.

Each bag of fertilizer is 50 kilogrammes of NPK 20-10-10 545,000 27,250.00, NPK 27-13-13 542,200 27,110.00, NPK 15-15-15 378,091 18,904.55 , UREA 635,444 31,772.18 , and SSP 50,000 2,500.00 .

The apex bank revealed that the fertilizers were not sold; they were a donation a freely given gift – to the Federal Ministry of Agriculture and Food Security.

In the frequently asked questions and answers report made available to the media CBN said that it donated the fertilizers to Nigerian farmers, so the crop-enrichers will be distributed free of charge to farmers across the country, and that the fertilizers are not meant to be sold.

On how the farmers would access the fertilizers in their respective states, CBN said; “The Federal Ministry of Agriculture and Food Security is managing the distribution modalities, eligibilities, and requirements.”

The apex monetary institution further proffers recommendations on the most efficient distribution mechanisms to ensure that the donation reaches the most relevant end-users.

“As the federal ministry of agriculture and food security possesses the requisite expertise and capacity in these matters, they will be responsible for ensuring the fertilizers reach the farmers most efficiently and effectively,” CBN stated.

The CBN reiterated that it has not initiated any new intervention but has rather donated fertilizers from the remnants of its stock, which were blended under its previous interventions in the agricultural sector.

These fertilizers are now being donated to farmers across the country through the Federal Ministry of Agriculture and Food Security. This decision is to support domestic agricultural production rather than allow the fertilizers to remain unused and go to waste.

We anticipate that the fertilizers will ultimately support our overall objective of price stability which is being challenged by rising food inflation.